INNOVATE Corp.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
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(1) Operating Segments and Related Information
- Segments and Related Information
The Company currently operates inone primary geography - United States, and substantially all revenue is derived in the United States, and substantially all PP&E and intangible assets reside in the United States. The Company's reportable segments are identified based on the nature of the services and products provided, the organizational structure, and the internal reporting system used by the Chief Operating Decision Maker ("CODM") to assess performance and allocate resources. As of June 30, 2026, the Company hadthree reportable operating segments, plus the Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum and Other. The Company also has a Non-Operating Corporate segment. All inter-segment transactions are eliminated on consolidation. There are no inter-segment revenues. Refer to Note 1. Organization and Business for additional information on the organizational structure of the business and Note 4. Revenue and Contracts in Process for additional information on revenue by segment.
During the second quarter of 2026, the Company's Spectrum segment met the criteria for classification as held for sale in accordance with ASC 360-10. As a result, the assets and liabilities of the Spectrum segment are presented as held for sale in the current period, and the prior period assets and liabilities of the Spectrum segment have been reclassified as held for sale for comparability purposes. While the Spectrum segment met the criteria for held for sale classification, it did not meet the criteria for classification as discontinued operations in accordance with ASC 205-20, as the anticipated disposal does not represent a strategic shift that will have a major effect on the Company's operations and financial results.
Refer to Note 3. Assets and Liabilities Held for Sale for additional information.
The CODM for the Company is the Interim CEO, Paul Voigt. The CODM is primarily responsible for allocating resources at all levels that do not require board approval. The CODM monitors the performance of each segment and is responsible for making strategic decisions regarding capital and resource allocation. The CODM uses a combination of monthly reports, which detail revenue and income (loss) from operations, and quarterly summaries, which include detailed breakdowns of each segment's income (loss) from operations, to evaluate segment performance, allocate resources and make strategic decisions. These financial metrics are used to view operating trends, perform analytical comparisons and benchmark performance between periods and to monitor budget-to-actual variances on a monthly basis. The primary U.S. GAAP metric used by the CODM in assessing segment performance is income (loss) from operations.
Financial information, including revenue and expenses, with respect to the Company’s operating segments, is as follows (in millions):
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $414.0 | $2.2 | $5.4 | $— | $— | $421.6 |
| Cost of revenue | 337.6 | 1.3 | 3.2 | — | — | 342.1 |
| Selling, general and administrative expenses | 34.1 | 1.6 | 3.1 | 2.7 | — | 41.5 |
| Depreciation and amortization | 2.8 | — | 0.7 | — | — | 3.5 |
| Income (loss) from operations | $39.5 | $(0.7) | $(1.6) | $(2.7) | $— | $34.5 |
| Other data: | ||||||
| Capital cash expenditures | $9.9 | $— | $0.5 | $— | $— | $10.4 |
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
| Revenue | $233.1 | $3.2 | $5.7 | $— | $— | $242.0 |
| Cost of revenue | 191.4 | 2.1 | 2.9 | — | — | 196.4 |
| Selling, general and administrative expenses | 26.8 | 3.8 | 1.9 | 2.6 | — | 35.1 |
| Depreciation and amortization | 3.1 | 0.1 | 1.2 | — | — | 4.4 |
| Other operating loss(1) | 1.2 | — | — | — | — | 1.2 |
| Income (loss) from operations | $10.6 | $(2.8) | $(0.3) | $(2.6) | $— | $4.9 |
| Other data: | ||||||
| Capital cash expenditures | $5.1 | $(0.1) | $1.1 | $— | $— | $6.1 |
(1) Other operating loss for the three months ended June 30, 2025, primarily consisted of a loss on lease modification and a loss on the sales of various properties at our Infrastructure segment.
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $771.9 | $3.8 | $10.7 | $— | $— | $786.4 |
| Cost of revenue | 644.6 | 2.7 | 6.1 | — | — | 653.4 |
| Selling, general and administrative expenses | 66.1 | 3.9 | 4.8 | 6.1 | — | 80.9 |
| Depreciation and amortization | 5.7 | 0.1 | 1.9 | — | — | 7.7 |
| Other operating income | — | — | (0.1) | — | — | (0.1) |
| Income (loss) from operations | $55.5 | $(2.9) | $(2.0) | $(6.1) | $— | $44.5 |
| Other data: | ||||||
| Capital cash expenditures | $18.8 | $— | $1.1 | $— | $— | $19.9 |
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $498.0 | $6.3 | $11.9 | $— | $— | $516.2 |
| Cost of revenue | 414.9 | 4.4 | 5.8 | — | — | 425.1 |
| Selling, general and administrative expenses | 56.1 | 7.5 | 3.8 | 5.5 | — | 72.9 |
| Depreciation and amortization | 6.2 | 0.2 | 2.4 | — | — | 8.8 |
| Other operating loss (1) | 1.1 | — | — | — | — | 1.1 |
| Income (loss) from operations | $19.7 | $(5.8) | $(0.1) | $(5.5) | $— | $8.3 |
| Other data: | ||||||
| Capital cash expenditures | $9.2 | $— | $1.6 | $— | $— | $10.8 |
(1) Other operating loss for the six months ended June 30, 2025, primarily consisted of a loss on lease modification and a loss on the sale of various properties at our Infrastructure segment.
| Certain balance sheet data: | |||||||
|---|---|---|---|---|---|---|---|
| Infrastructure | Life Sciences | Non-Operating Corporate | Other and Eliminations | Sub-Total | Spectrum - Held for Sale | Total | |
| Investments (1) | $— | $1.8 | $0.4 | $— | $2.2 | $— | $2.2 |
| Total assets | $820.1 | $7.6 | $4.0 | $— | $831.7 | $175.0 | $1,006.7 |
| Infrastructure | Life Sciences | Non-Operating Corporate | Other and Eliminations | Sub-Total | Spectrum - Held for Sale | Total | |
| Investments (1) | $— | $1.8 | $— | $— | $1.8 | $— | $1.8 |
| Total assets | $758.9 | $9.6 | $7.1 | $— | $775.6 | $174.5 | $950.1 |
(1) The Company's equity method investments in its Life Sciences segment totaled $0.9 million as of both June 30, 2026 and December 31, 2025.
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Reconciliation of the consolidated segment income from operations to consolidated income (loss) from operations before income taxes: | ||||
| Income from operations | $34.5 | $4.9 | $44.5 | $8.3 |
| Interest expense | (27.6) | (21.4) | (52.1) | (41.6) |
| Gain (loss) on extinguishment of debt | 18.4 | (0.3) | 18.4 | (0.3) |
| Loss from equity investees | — | — | — | (5.9) |
| Other income, net | 0.2 | — | 0.5 | 4.0 |
| Income (loss) from operations before income taxes | $25.5 | $(16.8) | $11.3 | $(35.5) |
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